This study aims to analyze the effect of institutional ownership on executive compensation mediated by company performance. This study uses a sample of manufacturing companies listed on the Indonesia Stock Exchange for the period 2015-2017. The sample selection method uses purposive sampling so that sampling is in accordance with the criteria of the researcher. In this study the sample amounted to 209 companies. The analytical tool used is multiple regression analysis and uses path analysis to measure the mediating variables. The results of this study indicate that institutional ownership has a positive and significant effect on company performance, institutional ownership does not directly influence executive compensation and the company's performance variable is able to mediate the relationship of institutional ownership to executive compensation.